Setting Up Garnishment Processing

This chapter provides an overview of garnishments and discusses how to:

• Define disposable earnings for garnishments.

• Maintain garnishment rules.

• Maintain state garnishment rules.

• Maintain garnishment proration rules.

• Create document details.

• Create correspondence types.

See Also

Assigning Garnishments

Understanding Garnishments

This section discusses:

• Delivered garnishment deductions.

• Delivered supporting elements.

• Garnishment assignments.

• Process lists and sections.

• Viewing delivered elements.

Delivered Garnishment Deductions

Global Payroll for United States delivers a single deduction element to calculate all garnishment deductions for the U.S.

In this table, the first column combines the name and description of the garnishment deduction. The other columns indicate the calculation rule components, such as Unit, Rate, Percent, and Amount, and the pre- and post-process formulas for the delivered garnishment deduction.

Note. This element is defined as PS Delivered/Maintained. This means that you cannot modify it without losing support for statutory rules changes.

Delivered Supporting Elements

This table lists the key supporting elements used to define the garnishment deduction:

Garnishment Assignments

The garnishment deduction has a calculation rule of Amount, with the Amount Type set to Payee Level. This means that garnishments are resolved only when:

• An amount is assigned to a payee on the Assignment page of the Assign Garnishments USA component (GPUS_GRN ).

• There is positive input for the deduction.

Note. When you enter one-time positive input for a garnishment deduction, you must specify the Garnishment ID (GRN VR ID), the Garnishment Received Date (GRN VR RECDT), and the Garnishment Type (GRN VR TYPE) of the garnishment you are overriding on the Calendar ID Override Details page of the One Time (Positive Input) component (GP_PI_MNL_ERNDED).

See Processing One-Time Garnishment Overrides.

Garnishment Accumulator for Federal Tax Levies

Before processing federal tax levies, you must make sure that all employee deductions are set up to contribute to the accumulator GRN AC FLVYSETUP N.

See Understanding the Accumulator Structure of General Deductions.

Process Lists and Sections

The garnishment deduction belongs to the USA STD PAYROLL process list.

It is assigned to the GARNISHMENT section of the process list.

Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for the U.S. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll 8.9 PeopleBook.

See Also

Viewing the Delivered Elements

Understanding Garnishment Setup Steps

To set up garnishments:

1. Define accumulators to hold disposable earnings.

   In Global Payroll, disposable earnings are defined as accumulators, and are created using the core accumulator definition component (GP_ACCUMULATOR).

   Global Payroll for United States delivers many disposable earning accumulators. You can modify them or use them as examples for creating your own accumulators to hold disposable earnings.

2. Define garnishment rules.

   The garnishment rules delivered by Global Payroll for United States specify the amount to exempt from disposable earnings.

   Note. PeopleSoft delivers and maintains the formulas for calculating exemption amounts. When PeopleSoft defines an exemption, it specifies the calculation formula and supplies components of the formula’s definition. For example, for a garnishment rule based on the exemption calculation formula Gross Percentage + Amount, PeopleSoft specifies both the percentage and the amount.

3. Define state garnishment rules.

   A state garnishment rule links a disposable earnings definition to an exemption rule, so that the system can calculate the garnishment amount allowed by state and garnishment type.

   Note. PeopleSoft delivers and maintains state garnishment rules for child support, federal tax levy, state tax levy, student loan, AWG, and creditor garnishments; however, you can modify and update the accumulators that hold disposable earnings, or create new accumulators to hold disposable earnings.

4. Define proration rules.

   Proration rules are used to calculate the amount to be deducted for each garnishment when insufficient funds are available to cover all garnishments of the same type.

   Note. PeopleSoft delivers and maintains proration rules for child support and creditor garnishments. For other garnishment types, you can create your own proration formulas or accept the default formula GRN FM FIFO ALL.

5. Create document details.

   Document details are user-configured fields used to record important information about garnishment orders.

   Note. Global Payroll for United States delivers several document detail fields; you can modify these fields or create new fields as needed

6. Create correspondence types.

   Correspondence types are user-configured fields that enable you to document who, when, and how an organization has communicated to payees or the issuing agency regarding a garnishment.

   Note. Global Payroll for United States delivers several correspondence type fields; you can modify these fields or create new fields as needed

The following sections provide detailed information about each of these setup steps.

Defining Disposable Earnings for Garnishments

This section discusses how to create disposable earnings.

To define disposable earnings for garnishments, use the Accumulators (GP_ACCUMULATOR) component.

Creating Disposable Earnings

In Global Payroll for United States, disposable earnings are defined as accumulators. PeopleSoft delivers many disposable earning accumulators. You can modify them or use them as examples for creating your own accumulators to hold disposable earnings.

This table lists the delivered accumulators for disposable earnings:

Note. If you create new disposable earnings accumulators, enter GDE, Garnishment Disposable Earning, in the Category field on the Accumulator Name page.

See Also

Setting Up Accumulators

Maintaining Garnishment Rules

This section discusses how to:

• Define garnishment rule information.

• Defining rule calculation information.

To maintain garnishment rules, use the Garnishment Rules USA (GPUS_GRN_RUL) component.

Pages Used to Define Garnishment Rules

Defining Garnishment Rule Information

Access the Garnishment Rule page.

Enter the description and comments for this garnishment rule.

Note. Global Payroll for United States delivers many garnishment rules. These rules are delivered and maintained by PeopleSoft.

Defining Rule Calculation Information

Access the Rule Calculations page.

Calculation Formula

Select the calculation formula used to calculate the exemption amount. Valid values are: DE Amt*Pct+Amt1*Pct+Amt2*Pct, DE Percent, CS &CG Deductions, DE Percentage + Amount, DE or Amount Percent, Disposable Earnings Percentage, Flat Amount, Flat Amount Percentage, General Calculation, Greater of %DE or Amount, Greater of %Gross or Amount, Gross Percentage, Gross Percentage + Amount, Minimum Hourly Wage, and SWT Gross Percentage.

Exemption Variable

Depending on the Calculation Formula, the appropriate exemption variables appear in the Exemption Variable group box. For example, if the calculation formula is DE Percentage + Amount, the exemption variables Flat Amount and Disposable Earnings Percent appear in the group box. You must then define the values of these variables.

Maintaining State Garnishment Rules

This section discusses how to define state garnishment rules.

To maintain state garnishment rules, use the State's Garnishment Rules USA (GPUS_GRN_STRUL) component.

Page Used to Define State Garnishment Rules

Defining State Garnishment Rule Information

Access the State Garnishment Rules page.

Note. PeopleSoft delivers and maintains state garnishment rules for child support, federal tax levy, state tax levy, student loan, AWG, and creditor garnishments; however, you can modify the accumulators that hold disposable earnings, or create new accumulators. If you create new disposable earnings accumulators, you will need to update the state garnishment rules to incorporate these accumulators.

Maintaining Garnishment Proration Rules

This section provides an overview of garnishment proration rules and discusses how to define garnishment proration rules.

To maintain garnishment proration rules, use the Proration Formula USA (GPUS_GRN_PRORUL) component.

Understanding Garnishment Proration Rules

Because garnishments cannot go into arrears, some states require that employers prorate an employee’s garnishments when insufficient funds are available to cover all garnishments of the same type. Proration rules are used to calculate the amount to be deducted for each garnishment.

Note. If there are multiple garnishments of the same type and you enter positive input for one of them, proration does not occur automatically. You must manually calculate the proration based on the initial row of positive input and insert a row of positive input for all garnishments of that type.

Page Used to Define Garnishment Proration Rules

Defining Garnishment Proration Rules

Access the Proration Formula page.

Note. Global Payroll for United States delivers and maintains garnishment proration rules for support and creditor garnishments.

See Defining Formula Elements.

Creating Document Details

This section discusses how to define document details.

To create document details, use the Document Details Table USA (GPUS_GRN_DOCTBL) component.

Page Used to Create Document Details

Defining Document Details

Access the Document Details Table page.

On the Document Details Table page, create garnishment order details to document the garnishment.

Note. You define fields to record details of a garnishment order on the Document Details Table page; you specify the value of these fields on the Assignment page of the Assign Garnishments USA component (GPUS_GRN) when you assign a garnishment to a payee. For example, you can define a field called Court Name on the Document Detail Table page; then, when you assign a garnishment, you can enter the name of the court that ordered the garnishment.

Note. Select the Default check box on the Document Details Table page to make a document detail field appear by default on the Assignment page of the Assign Garnishments USA component (GPUS_GRN). There can be only one default selection.

See Also

Entering Garnishment Assignments

Creating Correspondence Types

This section discusses how to define correspondence types.

To create correspondence types, use the Correspondence Type Table USA (GPUS_GRN_CRTTBL) component.

Page Used to Define Correspondence Types

Defining Correspondence Types

Access the Correspondence Type Table page.

On the Correspondence Type Table page, create fields to document who, when, and how an organization has communicated to payees or the issuing agency regarding a garnishment order.

Note. You define fields to record your communication about a garnishment order on the Correspondence Type Table page; you specify the value of these fields on the Assignment page of the Assign Garnishments USA component (GPUS_GRN) when you assign a garnishment to a payee. For example, you can define a field called EMSENT (Email Sent) on the Correspondence Type Table page; then, when you assign a garnishment, you can summarize or attach any emails you send.

Note. Select the Default check box on the Correspondence Type Table page to make a correspondence type field appear by default on the Assignment page of the Assign Garnishments USA component (GPUS_GRN). There can be only one default selection.

See Also

Entering Garnishment Assignments